8155.0 - Australian Industry, 2000-01
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 27/08/2003
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METHODOLOGY
Complex small and medium employing businesses 3 Information for complex small and medium employing businesses was also sourced from the EAS collection. There are two main types of businesses that are collectively termed ‘complex small and medium employing businesses’, and there are difficulties in sourcing business financial data from the business income tax files for these businesses. These businesses are:
Simple small and medium employing businesses 4 Small and medium employing businesses that have simple structures (i.e.management units with one legal entity) had their data sourced from the business income tax files. 5 Matching the ATO business income tax files to ABS sources for ‘Simple small and medium employing’ businesses. 6 Business entities must be matched to the business income tax files to obtain their business financial data. Given the complex nature of reconciling businesses on the business income tax files with the ABS Business Register, a complete match for all businesses is not possible. However, it is expected that for future years the number of records matched will increase as a result of the introduction of the Australian Business Number (ABN) and its inclusion on both the business income tax files and the ABS Business Register. 7 The ABS was able to identify 78% of selected businesses on the business income tax files. There are several reasons why there is not a 100% match rate:
8 The sampling and estimation methods used by the ABS take into account selected businesses that are not able to be identified on the business income tax files. 9 For ‘matched businesses’, the information is extracted from the business income tax files. Non-employing businesses 10 Data for non-employing businesses were sourced from the business income tax files. Up until June 2001, the ABS Business Register excluded non-employing businesses, but the business income tax files provides a rich source of data for businesses in the non-employing sector. 11 For non-employing businesses, the ABS used a definition based on reported values for wages and salaries, employee superannuation expenses and size of reported income and expenses. In this process some businesses may be included in both the population of employing businesses and the population of non-employing businesses, while other businesses may be excluded from both populations. Any overlaps or gaps between the two populations are not statistically significant. 12 Estimates for the non-employing sector of the selected industries were produced by aggregating unit record data obtained using the above methodology. Aggregating estimates 13 Estimates for the whole of the selected industries were produced by adding together the components for each of the business types, that is Large businesses, Complex small and medium employing businesses, Simple small and medium employing businesses and non-employing businesses. 14 Further detailed information on the methodology used to compile these estimates is outlined in the ABS Information Paper: The Expanded Use of Business Income Tax Data in ABS Economic Statistics - Experimental Estimates for Selected Industries, 1994-95 and 1995-96 (cat.no..5672.0). STATE ESTIMATES 15 The methodology for producing state estimates separates business entities into two groups:
16 For all employing businesses, a single state/multi-state indicator was obtained from the ABS Business Register. If up-to-date information regarding the state activities of a business was obtained from an ABS direct collection, the indicator information from the ABS Business Register was not used. 17 It was assumed that all non-employing businesses operated in a single state only. 18 The following diagram provides information on the number of businesses and per cent of contribution of all single state and multi-state businesses as identified on the ABS Business Register, and after allocation based on information from ABS direct collections. Single State Businesses 19 Non-employing businesses (Q4.2) were allocated to a single state using the business operations postcode obtained from the business income tax files. A small number of non-employing businesses had illegal or missing postcodes. These businesses were allocated across the states on a proportional basis. 20 Employing businesses identified as operating in only one state on the ABS Business Register and where no match was found to an ABS direct collection were divided into two groups (Q4.1 & Q4.2). Those businesses with income of less than $100m (Q4.2) were allocated to a state using their business operations postcode on the ABS Business Register and those businesses with income of $100m or more (Q4.1) were investigated to determine the state/s of operation and to obtain proportions across states. Multi-state businesses 21 One of the most difficult aspects of the production of state level estimates was the correct treatment of businesses that received income or paid wages in more than one state. In 2000-01, of the 417,938 employing businesses, 2,048 businesses (Q1, Q2.1 and Q2.2) were identified as multi-state businesses from the ABS Business Register. These businesses contributed 35.7% of the Total operating income estimate at the Australian level. 22 ABS economic collections with similar concepts to the EAS collection ask businesses a variety of state-based questions. In order of relevance, the ABS collections used to obtain state proportions for Sales and Wages for employing businesses were:
Matching multi-state businesses to ABS direct collections 23 From the EASTAX collection, 22,480 employing businesses were matched to the ABS direct collections listed above. If a business matched to more than one direct collection, the source with the highest relevance was used. 24 Of the 2,048 multi-state businesses identified from the ABS Business Register, state dissections for 1,837 businesses (89.7%) were obtained from ABS direct collections. Of these businesses, the majority were matched to the Manufacturing, Mining and Quarterly Economic Activity Survey collections. The remaining units matched across the other listed collections. 25 Some bias may be present in relation to obtaining state dissections from various ABS collections with different reporting periods, definitions and scope. Please refer to the Explanatory Notes for further information. 26 Of the large multi-state businesses, 90% of these units were matched. Businesses identified as multi-state and single state businesses which did not match to an ABS direct collection were investigated (sometimes involving contact with the business) if the Total operating income of the business was $100m or more (Q2.1 & Q4.1). 27 Multi-state and single state employing businesses, for which no match was found, with Total income less than $100m were allocated to the state of their postcode on the ABS Business Register (Q2.2 & Q4.2). 28 Sales proportions obtained for each business were used to apportion EASTAX Total operating income, Total operating expenses and OPBT data across the states for that business. Similarly, wages proportions were used to apportion Labour costs across the states. Document Selection These documents will be presented in a new window.
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